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Hong Kong
Opinion
Grenville Cross

A law criminalising the failure to prevent bribery could prove an effective tool in Hong Kong

The UK has shown the way forward with legislation to make companies responsible for the corrupt acts of people who act on their behalf

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ICAC commissioner Simon Peh Yun-lu has emphasised the importance of constructing “a watertight prevention system to deprive the crime of its breeding ground”. Photo: Felix Wong
Grenville Cross SC is a criminal justice analyst, a barrister (senior counsel), and a life senator of the International Association of Prosecutors (IAP).

In its mission statement, the Independent Commission Against Corruption commits itself “to fighting corruption through effective law enforcement, education and prevention”.

Corruption, however, remains a major problem in Hong Kong, with the ICAC’s overall caseload, by the end of 2015, standing at 1,737, much of it business-related, and this has had ramifications.

In Transparency International’s Corruption Perception Index for 2015, Hong Kong secured 75 points out of 100. Although Hong Kong’s standing, which is on a par with Japan’s, is well above the rest of China (the mainland was on 37 points, Macau on 51 points, and Taiwan on 62 points), it is still well behind, for example, Denmark (91), the UK (81), and Australia (79), which is a concern for “Asia’s World City”. Hong Kong’s global stature, after all, requires the ICAC to be pre-eminent, and its tools must therefore be state-of-the-art.

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The ICAC, of course, has some highly effective laws at its disposal, none more so than its “unexplained wealth” offence, for public sector corruption. Often called “draconian”, this was used, for example, against former prosecutor Warwick Reid in the 1990s, when Reid, head of the then legal department’s commercial crime unit, was found to be worth HK$12.4 million, which was disproportionate to his official earnings, and for which he could not account.
The public sector ... is a law unto itself, and the ICAC’s private sector armoury also needs beefing up, which means extending its reach

Reid, who had fixed cases in return for rewards, ultimately pleaded guilty to possessing disproportionate wealth, and was sentenced to eight years’ imprisonment, later reduced to seven years on appeal. Although the law, which places a reverse onus on a suspect to explain how the wealth was acquired, was challenged on constitutional grounds, the courts have upheld its legality, concluding that it is a necessary response to a grave problem, which might otherwise go unpunished.

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The public sector, however, is a law unto itself, and the ICAC’s private sector armoury also needs beefing up, which means extending its reach.

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